Wal-Mart Stores Inc. (NYSE: WMT) reported its third quarters for fiscal year 2017 and beat analysts’ estimates sending shares up 6 percent during Thursday’s pre-market hours.
For the third quarter, Wal-Mart reported revenue of $123.18 billion, increasing 4.2 percent year over year, and beating Thomson Reuters analysts’ estimates of $121 billion. The company reported an adjusted EPS of $1.00, beating analysts’ estimates of $0.97.
U.S. same-store sales increased 2.7 percent, beating the consensus of 1.8 percent, and up more than half from the previous year’s same quarter of 1.2 percent. Although, e-Commerce remained strong, as net sales increased 50 percent year over year.
"We are pleased with the strong results in the quarter across each of our business segments, and I want to thank our associates for their commitment and great work to make it happen. We have momentum, and it's encouraging to see customers responding to our store and eCommerce initiatives,” said Doug McMillon, President and CEO of Walmart.
For the 2018 fiscal year, Wal-Mart is forecasting an adjusted EPS of $4.38 to $4.46, higher than the previous forecast of $4.30 to $4.40.
"We're prioritizing eCommerce, technology, supply chain and store remodels over new stores and clubs." said Chief Financial Officer Brett Biggs said on a pre-recorded conference call.
As the holidays are approaching closer, Wal-Mart will likely see surges in sales, especially if the giant retailer keeps up with its e-Commerce business.
The retailers, like Wal-Mart, all faced fierce competition from companies that predominantly revolved around e-Commerce business, such as Amazon. Customers have begun to shift to the digital market, as opposed to stepping into physical locations. Now, giant retailers that used to mainly rely on in-store sales have transitioned into the digital business.